WILLIAM WATSON, examined by Mr. Purves, stated: I am a surveyor for Lloyd’s Registry of Shipping. The British Lloyd’s is an institution that has grown during the last sixty years. It is the biggest thing in the world. A vessel that is “A1” at Lloyd’s has a character that any man, who is interested in running risks, takes as a standard. The document now shown me is a certificate stating that the _Alert_ was classed when first built “ninety A1,” fit to carry dry and perishable cargo to all parts of the world. Below is a maltese cross which indicates that she was built under special survey. (Mr. Box here objected that the certificate given when the vessel was built had nothing to do with the present case, and his Honour decided to admit the evidence subject to the objection). Witness continuing said, “ninety A1” is simply a distinction to show that it is not “one hundred A1” nor “eighty A1,” but still an “A1” ship. The meaning of “A1” is that the hull of vessel so classed is fit to carry dry and perishable cargo. I knew the _Alert_ mentioned in Lloyd’s certificate, and remember the alterations made in her. I did not see her officially between July, 1893, and the date when she was lost (December, 1893). My opinion of her was that she was a good little ship. She was sea-worthy in every sense of the word, and was a very nice vessel. _Q._—What is a nice vessel—a plum cake is very nice but I would not like to go to sea on one.—? _A._—A very smart craft I would call her. I have been to sea, but I am not a sailor. Cross-examined by Mr. Box: I was in the employment of Lloyd’s in England, but not as surveyor. I was appointed surveyor, but did not continue in it. I am no authority as to what risks insurance companies will take. It is not a mere matter of premium. A risk is taken on the recommendation of surveyors. I am not in receipt of an annual salary from Lloyd’s, but I make surveys for them in Melbourne, and I get paid for my services by the owners of the ships in Melbourne whose vessels I recommend. I re-classified the _Alert_ in July, 1893. She was then in the Bay trade. I don’t know how she came out to Victoria. I don’t remember when she was built. I never formed an opinion as to whether she was built for the Bay trade only. She was, in 1893 when I surveyed her, fit to go all over the world. I did not go to sea in her, but I would not have been afraid to do so. She was fit according to Lloyd’s rules, and that was enough for me. It is not a rule of Lloyd’s that the grating over the engine room and stoke-hole should be covered.